A loan agreement is a legal contract between a borrower and a lender. It establishes how much money is being borrowed and sets other terms of the loan, including the repayment schedule and interest
A Loan Agreement is a written promise from a lender to loan money to someone in exchange for the borrower’s promise to repay the money lent as described by the Agreement. Its primary function is to serve as written evidence of the amount of a debt and the terms under which it will be repaid, including the rate of interest (if any). The note serves as a legal document that is enforceable in court creating obligations on the parts of both the borrower and the lender. Use this Loan Agreement template to lend or borrow money.
Though Loan Agreements are often referred to as IOUs or Promissory Notes, Loan Agreements are different than these documents in two key respects: 1. Loan Agreements are binding on both the borrower and the lender; and 2. Loan Agreements are much more detailed and include extensive provisions about when and how the borrower will repay the loan and what sorts of penalties will be incurred if the borrower does not follow through with repayment. Loan Agreements are usually used when large sums of money are involved, such as student loans, mortgages, car loans, and business loans.
A Loan Agreement sets out all of the terms and details of the loan, including the names and addresses of the borrower and lender, the amount of money being borrowed, how often payments will be made, the amount of the payments, and the signatures of the parties.
You can also specify whether or not interest will accrue on the loan and if so, the interest rate that will be used. You also have the option of including provisions to govern early payments as well as an acceleration clause that would cause the entirety of the loan to come due in the event of late payments or non-payment according to the agreed-upon payment plan schedule.
Tags: agreement, barrister, barristers, borrower, brett, build, central, clear, consolidated, davies, debt, deed, deeds, discretionary, docs, documents, dr, eforms, family, forgiveness, founder, fund, history, kenneth, law, lawyer, lawyers, laywer, legal, legal forms, lending, line, loan, loan agreement, on, online, personal, privilege, professional, school, self-managed, smsf, solicitors, student, super, superannuation, trust, update, updated